Zscaler, Inc.

XTRA:0ZC Stock Report

Market Cap: €29.1b

Zscaler Valuation

Is 0ZC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0ZC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0ZC (€199.24) is trading below our estimate of fair value (€304.95)

Significantly Below Fair Value: 0ZC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0ZC?

Key metric: As 0ZC is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0ZC. This is calculated by dividing 0ZC's market cap by their current revenue.
What is 0ZC's PS Ratio?
PS Ratio14.1x
SalesUS$2.17b
Market CapUS$30.64b

Price to Sales Ratio vs Peers

How does 0ZC's PS Ratio compare to its peers?

The above table shows the PS ratio for 0ZC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.6x
SUSE SUSE
3x7.4%€1.9b
IXX init innovation in traffic systems
1.4x13.2%€365.4m
NEM Nemetschek
12.4x14.1%€11.5b
IVU IVU Traffic Technologies
1.8xn/a€227.7m
0ZC Zscaler
14.1x16.2%€30.6b

Price-To-Sales vs Peers: 0ZC is expensive based on its Price-To-Sales Ratio (14.1x) compared to the peer average (5.2x).

Price to Sales Ratio vs Industry

How does 0ZC's PS Ratio compare vs other companies in the DE Software Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
CSH CENIT
0.4x5.2%US$75.69m
CLIQ Cliq Digital
0.09x12.6%US$26.28m
LSX LS telcom
0.5x5.0%US$21.25m
IVX InVision
0.6xn/aUS$9.65m
0ZC 14.1xIndustry Avg. 1.8xNo. of Companies7PS02.44.87.29.612+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0ZC is expensive based on its Price-To-Sales Ratio (14.1x) compared to the German Software industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is 0ZC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0ZC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio14.1x
Fair PS Ratio13.7x

Price-To-Sales vs Fair Ratio: 0ZC is expensive based on its Price-To-Sales Ratio (14.1x) compared to the estimated Fair Price-To-Sales Ratio (13.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0ZC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€199.24
€206.70
+3.7%
10.4%€256.72€168.29n/a41
Nov ’25€169.24
€194.43
+14.9%
11.6%€245.97€150.32n/a40
Oct ’25€150.96
€192.14
+27.3%
11.5%€241.81€147.77n/a39
Sep ’25€179.22
€206.63
+15.3%
11.8%€259.29€160.94n/a39
Aug ’25€163.44
€213.21
+30.5%
12.2%€268.74€166.81n/a39
Jul ’25€183.60
€214.54
+16.9%
12.2%€270.60€167.96n/a39
Jun ’25€154.34
€214.95
+39.3%
13.0%€267.32€165.92n/a40
May ’25€162.42
€242.18
+49.1%
9.1%€290.41€199.54n/a41
Apr ’25€179.10
€237.27
+32.5%
8.9%€283.46€194.77n/a40
Mar ’25€202.05
€238.01
+17.8%
9.5%€286.07€194.62n/a39
Feb ’25€217.30
€223.83
+3.0%
12.7%€287.83€169.37n/a41
Jan ’25€203.40
€201.15
-1.1%
11.0%€249.70€163.44n/a39
Dec ’24€181.18
€186.90
+3.2%
8.1%€208.46€150.20n/a38
Nov ’24€147.66
€174.61
+18.2%
10.1%€212.56€126.86€169.2439
Oct ’24€149.76
€171.46
+14.5%
8.9%€212.83€127.02€150.9639
Sep ’24€147.02
€156.25
+6.3%
12.2%€208.87€111.40€179.2239
Aug ’24€145.54
€151.87
+4.3%
12.7%€203.58€108.58€163.4438
Jul ’24€136.24
€153.39
+12.6%
12.6%€205.36€109.52€183.6037
Jun ’24€126.36
€141.69
+12.1%
18.3%€209.12€111.53€154.3437
May ’24€81.88
€140.21
+71.2%
18.2%€205.09€104.82€162.4238
Apr ’24€107.42
€145.43
+35.4%
17.2%€210.98€112.52€179.1038
Mar ’24€120.00
€157.08
+30.9%
18.9%€260.67€113.75€202.0537
Feb ’24€114.88
€151.24
+31.6%
19.5%€250.33€104.68€217.3038
Jan ’24€103.06
€169.11
+64.1%
17.2%€259.44€127.36€203.4036
Dec ’23€134.00
€189.76
+41.6%
15.6%€266.00€147.25€181.1835
Nov ’23€160.38
€214.80
+33.9%
11.9%€283.89€162.22€147.6635

Analyst Forecast: Target price is less than 20% higher than the current share price.

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